AKVA Seafoods Reports Strong First Quarter

NORWAY - AKVA has reported increased operating revenues and strong orders for the first quarter of 2010, however warn that the market is still dominated by uncertainty.

Operating revenues increased 5.6 MNOK, whilst order inflow for the first quarter was 140 per cent higher.

The group says that in the first quarter of 2010, normalised and sound development in the markets in the UK and Canada were seen, as well as positive signs of development in Chile.

Despite warning that the general situation is still dominated by uncertainty, the group experienced an improved order inflow and increased order backlog compared to previous quarters.

"The salmon industry is enjoying high salmon prices and good volumes, resulting in correspondingly strong results. This should fund reason for improvement in the market development going forward, however uncertainty is still prevalent," said Knut Molaug, Chief Executive Officer for AKVA.

In April AKVA group signed a contract of 54 MNOK for delivery of 3 complete full scale farming sites in Croatia. AKVA group believes there will be an increasing demand for such complete turn-key solutions also in other markets in the future. Furthermore the market interest for recirculation is increasing and it is likely that this will lead to more investments by AKVA's customers going forward.

The challenging fish health situation in the Chilean market through the last years now seems to be under control. This is now leading to a gradual improvement of the market activity, however the return of the Chilean market is expected to take years.